The controversial climate tool funding real change | Sandeep Roy Choudhury

Summary

Podcast Summary

Podcast: TED Talks Daily
Episode: The controversial climate tool funding real change | Sandeep Roy Choudhury
Date: February 24, 2026
Speaker: Sandeep Roy Choudhury
Event: TED Countdown Summit, Nairobi, Kenya, 2025
Host: Elise Hu

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Episode Overview

This episode features Sandeep Roy Choudhury, a climate equity entrepreneur, discussing the complex, often criticized, but powerful role of carbon credits in advancing climate solutions—especially for frontline communities most affected by climate change. Choudhury explains what carbon credits are, how they work, common criticisms and real-world impact, and why, despite their imperfections, they are a valuable financial tool in the fight against global emissions.

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Key Discussion Points & Insights

1. The Imperfect but Necessary Reality (02:54)

• Choudhury acknowledges up front: "We don't live in a perfect world. I wish we did, especially when it comes to fighting climate change."
• While 30% of the world uses clean energy, heavy reliance on fossil fuels continues—hence, the need for transitional solutions.
• Companies under the Science Based Targets initiative commit to 6.4% annual emissions reductions, but Choudhury asks, “What happens to the other 93.6%?”
  • Quote: "My fight is on that 93.6%. What happens between now and then? Who takes care of these emissions?” (03:45)

2. What Are Carbon Credits? (04:01)

• One carbon credit equates to 1 ton of carbon either removed, reduced, or avoided.
• Credits undergo third-party audits and certification according to international standards.
• Companies buy credits to offset emissions they cannot reduce yet—not as “a license to pollute” but as a form of responsibility and a means to fund climate solutions outside their direct operations.
• Key Framing: Carbon credits act as “an agile bridge” that gets funding and solutions to communities needing them now.

3. Real-World Impact—Successes and Failures (05:30)

• Case Study – Indonesia:
  • In 2021, Choudhury’s team helped build “a wall of mangroves” at the request of a local NGO. Mangroves proved their worth during tsunamis, reducing destruction.
  • Public climate finance is too slow for these frontline communities, whereas carbon credits provided timely funding.
• Acknowledged Risks and Failures:
  • In Sumatra (Fall 2024), floods destroyed mangrove plantations. Does this invalidate the offsets? Choudhury explains that projects account for such risks with safety buffers (15-20% of credits set aside).
  • Quote: “Most of climate action will happen in places where the risk is high… we recognize these risks and we account for these risks every time we develop these projects.” (06:55)

4. Criticisms and Addressing Skepticism (07:40)

• Choudhury recognizes the carbon market’s “wild, wild west” reputation and admits to high-profile failures.
• Not all carbon projects are successful, but “not all failures are the end of the story.”
• He advocates for continual improvement, transparency, and accountability.

5. Polluters Pay—But Who Gets Paid? (08:11)

• Carbon markets enable polluters to directly fund those enacting climate solutions in the Global South.
• Quote: “Carbon markets actually allows for this polluters to pay directly to the people who are taking climate action.” (08:15)
• Choudhury emphasizes the planet “could not care where your decarbonization comes from.”

6. Cost & Social Impact of Carbon Credits (08:30)

• Reducing a ton of carbon costs $75 in the EU versus $15 in Southeast Asia, often with far greater social impact.
• Cases:
  • Kashmir: Solar home lighting for off-grid villages
  • Indonesia: Women-led microenterprises using mangrove pigments
  • Madagascar: Ex-poachers now planting mangroves
  • Tanzania (Kigoma): Women’s agroforestry collectives and community football teams
  • Bangladesh: Scaling clean cooking kitchens from 500,000 households in 2012 to 6.5 million
• Key Point: “Community building cannot be decoupled from nature restoration.” (09:30)

7. Challenges with Accounting & Standards (09:50)

• Critics question the solidity of carbon credit accounting; Choudhury responds that as science improves, so does accountability.
• Carbon finance is a business transaction (not a grant); those taking climate-positive action are compensated for their service.

8. The Global South’s Only Option? (10:40)

• Dismissing carbon credits makes it “impossible or make[s] it so much harder for companies who are actually trying to.”
• Choudhury warns against making inaction “feel safer than action,” as carbon finance is one of the only tools readily available to the Global South.

9. Final Call to Action (11:16)

• Quote: "Let's fix what needs fixing. Let's take responsibility for all those emissions and leave no emissions behind. Price every ton. That's the only responsible thing to do." (11:15)

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Notable Quotes & Memorable Moments

• “My fight is on that 93.6%... Who's taking responsibility for these emissions that we are leaving out there in the atmosphere?” – Sandeep Roy Choudhury (03:45)
• “Think of carbon credits as a bridge, an agile bridge. It gets you funding right now. We need finance now and that's an important concept.” (05:00)
• “I have seen the difference it can make.” (05:17)
• “Most of climate action will happen in places where the risk is high. That's the way it should be done... we recognize these risks and we account for these risks every time we develop these projects.” (06:55)
• “Polluters pay, but pay who, right?... Carbon markets actually allows for this polluters to pay directly to the people who are taking climate action.” (08:11)
• “Community building cannot be decoupled from nature restoration.” (09:30)
• “Today all of the market detractors make it impossible or make it so much harder for companies who are actually trying to. This will not solve this problem.” (10:50)
• “Let's fix what needs fixing. Let's take responsibility for all those emissions and leave no emissions behind. Price every ton. That's the only responsible thing to do.” (11:15)

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Important Timestamps

| Timestamp | Topic/Quote | |-----------|----------------------------------------------------------| | 02:54 | Opening—imperfection of the fight against climate change | | 03:45 | “My fight is on that 93.6%...” | | 04:01 | Explanation of carbon credits | | 05:30 | Indonesia mangrove case study—need for fast finance | | 06:55 | Recognizing and accounting for project risks (buffers) | | 08:11 | “Polluters pay... but pay who?”—directing funds via carbon credits | | 08:30 | Social impact examples—Kashmir, Indonesia, Madagascar, Tanzania, Bangladesh | | 09:30 | “Community building cannot be decoupled from nature restoration.” | | 09:50 | Accounting and standards—ongoing improvement | | 10:40 | Challenges facing companies that want to do the right thing | | 11:15 | “Let's fix what needs fixing... Price every ton.” |

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Tone & Language

Choudhury speaks with urgency, pragmatism, and conviction. He is transparent about challenges, but hopeful and solutions-oriented, focusing on tangible change at the community level. The talk is peppered with on-the-ground stories and passionate calls-to-action, emphasizing human and social realities along with climate science.

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Conclusion

Sandeep Roy Choudhury’s talk reframes carbon credits as imperfect but indispensable tools, especially for communities most in need of climate finance today. His plea: don’t let the pursuit of perfect tools stifle action and possibility—price every ton, keep improving the system, and make sure no emissions, or communities, are left behind.

Transcript

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[Sandeep Roy Choudhary]

We don't live in a perfect world. I wish we did, especially when it comes to fighting climate change. Sure, we have 30% of the world on clean energy, but we still depend a lot on fossil fuels for the near future. Take the Science Based Targets initiative. It's a leading decarbonization initiative for businesses. Businesses have taken a target on an average of 6.4% emission reductions per year, year on year, till they go net zero. That's great news. But what happens to the other 93.6%? My fight is on that 93.6%. What happens between now and then? Who takes care of these emissions? Who's taking responsibility for these emissions that we are leaving out there in the atmosphere? Here's where carbon credits come in. One carbon credit equals 1 ton of carbon that is either removed, reduced or avoided. These don't come from thin air. They are third party, audited, certified, using international standards. These credits can then be bought by companies to offset their emissions, not the 6.4% they are to reduce. It's for this 93.6. And that's the important point. This also allows companies, this is not a license to pollute. This allows companies to take responsibility for these emissions. Yes, but it also allows these companies to work beyond their boundaries and help things like the energy transition, things like planting mangroves in some other country. For the communities, communities, the frontline communities who bear the brunt of climate change every day of their lives. I actually call them the first responders, not the vulnerable. It's an important distinction to make. Solutions can and should reach every part of the planet, from the tropics of the Papua to the deserts of the Sahel to the settlements of the Amazon, everywhere. Think of carbon credits as a bridge, an agile bridge. It gets you funding right now. We need finance now and that's an important concept. So sometimes we're called to the wild, wild west, the carbon markets. I have been working in carbon for almost two decades now and I have seen the difference it can make. I'll take you to Indonesia. There was this NGO that reached out to us in 2021 and said, we want to build a wall of mangroves. I said, why? In 2004, when the tsunami hit, all those islands which had standing mangroves, the waves, they were tackled faster and then hence there was less destruction in those islands. Again, you have to remember that public climate finance is slow to reach these last mile communities because it's steeped in bureaucracy. And geopolitics. Geopolitics people, the world we live today. And they came to us and we made it happen through carbon credits. Sometimes these credits, the markets usually, and I hear this a lot, it's a scam. And I get it. Because there have been some high profile failures about carbon markets that you might have heard about. And I get it. But not all projects are failures and not all failures are the end of the story. Let me talk about one of my failures. The same mangroves we planted in Indonesia. Out of those, in one area of Sumatra, there was this massive flood in the fall of 2024. Those wall of mangroves disappeared. The floods came in, took all those trees. Does that mean all those carbon credits that we claimed for the projects were bogus? No, because we account for these risks in any carbon standards and methodologies. We have things like dispersed planting, risk management and buffers. Buffers is an important concept. Every project keeps aside about 15 to 20% of carbon credits for exactly this reason. So the credit and the claim stands. This is important because most of climate action will happen in places where the risk is high. That's the way it should be done. But yes, we recognize these risks and we account for these risks every time we develop these projects. And this is not just for us. Most carbon projects would have to do that. A good project, if done properly, can make a massive difference. I often hear about polluters pay. I go to conferences and I see these people holding up signs Polluters pay. And I almost question saying polluters pay, but pay who, right? So carbon markets actually allows for this polluters to pay directly to the people who are taking climate action. This is important directly to people who are taking climate action and the planet, frankly, could not care where your decarbonization comes from,

[Podcast Advertiser]

right?

[Sandeep Roy Choudhary]

So case in point, it costs $75 to reduce 1 ton of carbon on an average in the European Union. In Southeast Asia that average is $15 a tonne. You're getting five times more impact value for your buck and you're getting I don't know how many multitude more times of the social impact. I have seen it firsthand. Let me take you to Kashmir. It's distant village in India where the grid will never reach. Solar home lighting systems here, same project in Indonesia. Women micro enterprises making batik products using mangrove pigments. Livelihoods meet Injara. He's an ex poacher in Madagascar, now plants mangroves with us. Social change. A football team in Kigoma, Tanzania. Let me take you there. These are Women who plant agroforestry systems with us in Kigoma but play football. We have village level football competitions now. Community building cannot be decoupled from nature restoration. This is a very important point. And this is a scale up. This is a Bangladesh program. And clean cooking concrete kitchens in rural Bangladesh was languishing about 500,000 households in 2012. We took it up to 6.5 million households in the next few years. Scale is of essence on climate action. And that's where markets can help. This is all possible because when climate action is rooted in people and possibilities, possibilities, markets allow us to explore those possibilities. Sometimes I hear about the accounting. Ah, but the accounting is not solid. I get it. But which part of climate science is solid accounting? The science improves, so does the accounting. We also worry about things like indigenous rights, consent on local populations, benefit sharing mechanisms. Please understand that we worry about it. So do the carbon standards. A carbon finance is not a grant, it's a transaction. It talks to the equality of the transactor and the transacted. A farmer transitioning to a cleaner practice is being paid for a service. It's not a dole out. These people, these programs have nowhere else to go for money. So companies will reduce what they can and they will invest in carbon credits for what they can't figure for. It's the right thing to do. But today all of the market detractors make it impossible or make it so much harder for companies who are actually trying to. This will not solve this problem. We have to keep trying for mistakes will happen and that's okay. What is not right is to let go of the only tools that work for the global South. Today we are making inaction feel safer than action. That's not how the suits get solved. So let's fix what needs fixing. Let's take responsible for our responsibility for all those emissions and leave no emissions behind. Price every ton. That's the only responsible thing to do. Thank you.

[Elise Hu]

That was Sandeep Roy Choudhary speaking at the TED Countdown Summit in Nairobi, Kenya in 2025. If you're curious about Ted's curation, find out [e-mail] curationguidelines and that's it for today. TED Talks Daily is part of the TED Audio Collective. This talk was fact checked by the TED research team and produced and edited by our team, Martha Estefanos I' Oliver Friedman, Brian Greene, Lucy Little and Tansika Songmar Nivong. This episode was mixed by Christopher Faizy Bogan. Additional support from Emma Tobner and Daniela Balaurazo. I'm Elise Hu. I'll be back tomorrow with a fresh idea for your feed. Thanks for listening.

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